Instore buys Ponden Mill shops
CUT-PRICE retailer Instore has bought 33 Ponden Mill shops after the group went into administration last week.
The move via Huddersfield-based Instore's subsidiary Poundstretcher, sees it acquire 33 of the larger Ponden Mill stores mainly based on out-of-town retail parks with turnover of £21.8m.
The deal, for £3.8m, includes all stock in the stores and at Ponden Mills parent company Marston Mills' Keighley distribution centre as well as a licence to use the Coloroll brand.
Joint Administrator, Simon Allport, commented: “The remaining parts of the business will continue to trade under administration and we are continuing to progress a number of further transactions which we hope to complete in the next few weeks.”
Instore was advised by a legal team from Lupton Fawcett in Leeds led by associate Richard Annett assisted by Doug Robertson and Tim Cross.
Administrators from Ernst & Young (E&Y) are now looking to complete deals for the rest of the Ponden Mills business, which before the sale to Instore comprised 135 stores and 80 department store concessions, employing 1,300 people.
The Keighley-based homeware and soft furnishings retailer saw administrators from E&Y in Manchester appointed last week to its parent company Marston Mills Group and 44 staff were made redundant at the head office.
The remaining shops, which trade under the Ponden Mill and Life from Coloroll brands on the high street, factory outlets, mill stores and department store concessions, have remained open.
The struggling Marston Mills business was sold by leisure tycoon Trevor Hemmings, the owner of Blackpool Tower, last month to the London-based turnaround fund Agilo.
Agilo, co-founded by city financier Jason Granite and which counts former Conservative cabinet minister Michael Portillo among its advisers, joined forces with retail turnaround specialist Hilco to buy Ponden Mill from Lancashire-based racehorse owner Mr Hemmings, who bought the business in February 2005.
Mr Hemmings' family trusts bought the company from founder Barry Brookfield, who started out with £70 of savings selling linen from a stall in Skipton market in 1968.
Ponden Mill turned over around £37m in 2005 but has been squeezed by the big supermarket chains' move into non-food market sectors, such as bedding and homewares.
